Part 1: My current answers 2. Prepare a statement of changes in equity for the year ended December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) 3. Prepare the equity section of the company's balance sheet as of December 31, 2024
Part 1: My current answers 2. Prepare a statement of changes in equity for the year ended December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) 3. Prepare the equity section of the company's balance sheet as of December 31, 2024
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help solve Part 2&3 and show formulas:
The
Tactex Controls Inc. | |||
Equity Section of the Balance Sheet | |||
December 31, 2022 | |||
Contributed capital: | |||
$ | 402,000 | ||
Common shares, unlimited shares authorized; 85,000 shares issued and outstanding | 745,000 | ||
Total contributed capital | $ | 1,147,000 | |
388,000 | |||
Total equity | $ | 1,535,000 | |
In 2023 and 2024, the company had the following transactions affecting shareholders and the equity accounts:
2023 | |||
Jan. | 1 | Sold 40,000 common shares at $11.64 per share. | |
5 | The directors declared a total cash dividend of $241,000 payable on Feb. 28 to the Feb. 5 shareholders of record. Dividends had not been declared for the years 2021 and 2022. All of the preferred shares had been issued during 2021. | ||
Feb. | 28 | Paid the dividends declared on January 5. | |
July | 1 | Sold preferred shares for a total of $157,800. The average issue price was $20 per share. | |
Dec. | 31 | Closed the dividend accounts along with the $577,800 credit balance in the Income Summary account. | |
2024 | |||
Sept. | 5 | The directors declared the required cash dividend on the preferred shares and a $2.4 per common share cash dividend payable on October 28 to the October 5 shareholders of record. | |
Oct. | 28 | Paid the dividends declared on September 5. | |
Dec. | 31 | Closed the Cash Dividends account along with the $544,200 credit balance in the Income Summary account. |
Part 1: My current answers
2. Prepare a statement of changes in equity for the year ended December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.)
3. Prepare the equity section of the company's balance sheet as of December 31, 2024.
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